Posts Tagged ‘Dax’

On the last article Simon Grifin from Share magazine has recommended to sell the FTSE 100 at 3950. He called the latest rally as typical bear rally or in other words false rally. By the time I was reading his article the FTSE 100 was around 4100 and the Dax was 4650. Then came Friday and markets continue to move up around 0.5%

All of these put my Dax 4000 Put for May call value on the lowest you can imagine (6 points when I bought it for 36). This wasn’t good. I was speaking with my friend that holds the same positions and both of us agreed that the market is almost on its peak and the only way is down.

So we checked to buy the Dax 4400 Put for May. The price was 66 around 17:00. I though that if the Dow will finish on high note then the option will be worth 60 or less and I will buy it. But I forgot to check. You know Friday evening is not the best time to deal.

Anyway it touched 62 and the weekend has started. A new week and the markets again see red. The Dax lost 190 points in one day. This means two things:

1) My 4000 Put worth 34 now (300% in one day)

2) 4400 put that I didn’t buy worth around 125 (100% in one day)

All I can do is blame myself. I knew that the market will go down but combination of tiredness and fear of losing more prevented me to take a huge profit. Another painful lesson has been learned.

Hello all,

I have bought today a put option on the Dax. Why the Dax? The FTSE 100 didn’t jump as high as the German one or the Dow. While the Dow jumped from 6500 to 8000, and the Dax from 3600 to 4500, the FTSE was much more solid and jumped from 3500 to 4000.

So if I am right and the market will change direction, my logic says that the FTSE will slide slower than the other two. So I left with 2 options. The Dow options seem to me expensive so I’ve decided to choose the German index.

Bought it for 36.3. The lowest price today was 30 but I missed the bottom. I guess you can’t catch the bottom. So I have 4.5 weeks and my target is to double the money. I will keep you updated.

Hi all,

On Friday I bought shares of Barclays at 48p. Today it turned out to be one of the best buy I ever did. They announced in the morning that they made a profit and they don’t need more money and the share went all the way to 88.70 a 73% gain in one day. Did I took profits? No. No? No. Why? because I think the share has more to gain. I target the 120 price but I know some people who look for the 150-160p.

Again I missed the GBP/USD my order level is still 13520 and it went down all the way to 13550 and then a huge jump to 13967… I don’t have luck with the GBP…

Another thing that I’ve made today was to go short on the Dax at 4332. This was a mistake. First I never followed the German market and I don’t know a thing about it. Second I didn’t have the right frame of mind to follow the trade. And third I didn’t set targets. So why I opened the position? because Paddypower has this nice tool on their homepage where you can see the balance between short and long that people are taking. So around 15:00 98% went long on the Dax. I thought 98% can’t be wrong and the RSI was at 82 level. I opened a position. 10 minutes after I was 40 points down. Now if you bet one or two pounds per point it is not that bad. But I was more than that and my profit from Barclays was at risk.

I’ve almost lost my temper and closed the position at lost. But I hold my nerves left the computer for 10 minutes and by the time I came back I was in the money. I closed the bet because I knew I didn’t have the time to monitor it. 10 points gain. Now I checked the Dax and I could made another 35 points… but lesson learned. Never opened a position on a market that you don’t know. And never use a stop loss on Index. It will cost you a lot!

By the way Paddypower spread on the Dax is just 1 point!